First Guaranty Bancshares, Inc. Announces Key Developments and Second Quarter 2024 Financial Results

Financial Performance - Total assets increased by $62.8 million to $3.6 billion as of June 30, 2024, compared to December 31, 2023 [1] - Total loans reached $2.8 billion, an increase of $84.6 million or 3.1% from December 31, 2023 [1] - Total deposits were $3.0 billion, up by $34.4 million or 1.1% from December 31, 2023 [1] - Net income for Q2 2024 was $7.2 million, a significant increase of $4.5 million or 169.1% compared to Q2 2023 [1] - Earnings per common share for Q2 2024 were $0.53, compared to $0.19 for Q2 2023 [1] Credit Quality - The allowance for credit losses was 1.07% of total loans as of June 30, 2024, down from 1.13% at December 31, 2023 [1] - Nonaccrual loans increased by $37.1 million to $62.3 million as of June 30, 2024, primarily due to one commercial real estate relationship [4] - Total charge-offs during Q2 2024 amounted to $8.8 million, with significant amounts related to a restaurant supply business and other loans [13] Investment Securities - Investment securities totaled $358.6 million as of June 30, 2024, a decrease of $45.6 million from December 31, 2023 [3] - Available for sale securities decreased to $37.4 million, down by $46.1 million from December 31, 2023 [3] Business Strategy Changes - The company is implementing a new business strategy that includes slowing asset growth and increasing capital position, resulting in a reduction of 71 positions, approximately 15% of the workforce [12] - Anticipated annual noninterest expense reduction of approximately $12.0 million, with quarterly savings expected to impact Q4 2024 and 2025 [12] - A sale-leaseback transaction was completed for two branches and part of the headquarters, generating a pre-tax gain of approximately $13.2 million [12] Shareholder Returns - Book value per common share increased to $17.76 as of June 30, 2024, from $17.36 at December 31, 2023 [6] - The Board of Directors declared cash dividends of $0.16 per common share for Q2 2024, maintaining a record of 124 consecutive quarterly dividends [6]